Autumn Budget Update | Bira CEO Andrew Goodacre

Hello,

I wanted to write to you directly as the CEO of Bira (including ACT, Retra and MICA) to give you the full picture on what last week's Budget really means for your business rates bill.

Like many of you, I watched the Chancellor's speech hoping to finally see the transformation we've been promised. Instead, what we got was a masterclass in political spin that masks a harsh reality - most independent retailers will be paying significantly more in business rates next year, not less. 

Let me be blunt. We have been misled. 

The government announced their "transformation of business rates" last year with great fanfare. The idea was simple and fair - larger businesses would pay extra so smaller retailers could receive permanently lower rates. The original proposals talked about reducing multipliers by up to 20p. 

What we actually got was a 5p reduction. Five pence. And even that modest cut has been more than swallowed up by increases in rateable values.

Over the weekend following the Budget, we worked intensively with the Treasury, providing them with real examples from members to show how unfair this new system is. They confirmed additional support through the Supporting Small Business scheme. This is something we were pushing for before the budget as we were fearing these large increases. 

While these complex reliefs do reduce the increases somewhat, they don't go far enough. The fact that they're even needed proves that business rates still requires wholesale reform, not this tinkering around the edges. 

Here's what this means in practice. Even with all the additional reliefs factored in, most shops will see a minimum £800 increase or a 15% increase in their business rates bill next year. That's 5 times higher than inflation! The Chancellor has talked about the lowest multipliers since 1991. Any business owner knows that you don’t pay multipliers, you pay cash. 

Let me give you two real examples:

• Example 1. A shop with a rateable value rising from £30,000 to £39,000 will see bills increase from £8,982 to £10,329 - that's £1,347 more, or 15%.
• Example 2. A smaller shop with rateable values rising from £15,000 to £20,000 will face the £800 cap increase, taking bills from £4,491 to £5,291 (a 18% increase). 

To add insult to injury, it appears that many very large stores will actually be paying less than this year. How can this be called “fair and necessary”, as the Chancellor has described this budget? 

We've raised serious questions with the Valuation Office about how shops on the high street can see their valuations soar while superstores on retail parks receive much lower increases. It simply doesn't make sense, and we're demanding an explanation. 

This comes at the worst possible time. The Budget was announced on 26th November, right in the middle of our busiest trading period, and the months of speculation beforehand hammered consumer confidence to an all-time low. Now you're facing higher business rates, National Living Wage rising to £12.71 from April, and another four years of being undercut by overseas sellers before the import duty loophole finally closes in 2029. 

I won't pretend this is anything other than deeply disappointing and frustrating. You deserve better. Your businesses are the backbone of our high streets and communities, and you play by the rules, pay your taxes, and provide jobs and services that matter. This Budget should have recognised that. Instead, it's left you facing another year of mounting pressures. 

But here's what I want you to know - Bira is not backing down. 

We will continue to fight for genuine wholesale reform of business rates. We will hold the government to account on their promises. We will demand faster action on closing the import duty loophole. And we will make sure your voices are heard at the highest levels of government. 

In the coming weeks, we'll be providing detailed guidance on how the new reliefs work and what you can do to ensure you're claiming everything you're entitled to. We'll also be coordinating our response and continuing to push for the real transformation that was promised but not delivered.  

I know this letter contains difficult news. But I'd rather be honest with you about what we're facing than pretend everything is fine when it clearly isn't. 

If you have questions or concerns about your specific situation, please don't hesitate to contact us. We're here to support you through this. 

Please also keep us updated on your thoughts on this through the Bira forum where members are discussing their business rates and the transitional reliefs. You can also email is us at policy@bira.co.uk. 

Thank you for your continued membership and for everything you do for your communities.  

Yours sincerely, 

Andrew Goodacre